Month: May 2024

News You Should Know: Scammers Increasingly Targeting Older Adults

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Why Finance Cons Target Older Adults, and How to Protect Yourself | NerdWallet

Fraudsters have been increasing their efforts to scam older Americans out of their money in recent years. The latest data from the FBI show losses of $3.4 billion last year from scams targeting people who are 60 and older, an 11% increase from the previous year. Here are some tips for spotting and avoiding some common scam techniques.

How 55,000 Coloradans Are Saving Up for Retirement | The Colorado Sun

Colorado SecureSavings, the state-facilitated retirement plan for private-sector workers without access to a plan through their employer, has enrolled more than 50,000 workers in its first year. In total, workers have saved more than $50 million, and the program is on track to nearly double its participants by the end of this year.

IRS Free File Tax Program Has Been Extended Through 2029 | CNBC

The IRS is continuing its Free File partnership with tax software companies while it determines the future of its own direct-file program. The Free File program, which allows some taxpayers to file their taxes using third-party software without paying fees, will continue through 2029. As for the agency’s plans for Direct File, which several states piloted this past tax filing season, the IRS expects to announce more soon.

What the Creator of the 401(k) Thinks of the Retirement Plan Now | Next Avenue

Ted Benna is credited with creating the first 401(k) retirement plan by taking advantage of new legislation in the early 1980s. Today, he says the plans haven’t quite lived up to their potential and he’s on a mission to help lower-income workers save more money for retirement.

News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

2024 PERA Town Halls Taking Place on June 26

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Save the date—this year’s Town Halls with PERA executives are set for June 26.

PERA holds Town Halls each year after the release of the Annual Comprehensive Financial Report (ACFR), which contains details on the Plan’s finances and membership for the previous calendar year. The PERA Board of Trustees will release the 2023 ACFR at its June 21 meeting.

This year, participants will have the opportunity to meet PERA’s new CEO/Executive Director, Andrew Roth. He and the executive team will be taking questions live during two Town Halls.

This year’s Town Halls will once again be virtual, with the option to participate online, via social media, and on the phone.

Event details

Date and time: Wednesday, June 26

How to participate

There are multiple ways to take part in these virtual events:

Both Town Halls are open to anyone who would like to participate, but the content of each will be tailored to its respective audience.

If you’re unable to attend either event, recordings will be available afterward.

For more information, visit copera.org/townhall.

Q&A With PERA’s New CEO/Executive Director Andrew Roth

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Andrew Roth began his tenure as Colorado PERA’s eighth CEO/Executive Director on Monday, May 13.

PERA On The Issues sat down with Mr. Roth to learn more about him, his experience, and his perspective on the issues facing PERA and its members.

Answers have been lightly edited for length and clarity.

Tell us a little bit about your career and how you ended up working in public pensions.

I started my professional career with the California State Auditor as a performance auditor. The State Auditor taught me how to critically assess government programs and identify and review key documents. After working as a Public Information Officer for the California Department of Social Services, I joined the state securities regulator as their Director of Education and Outreach. There I championed anti-fraud and financial literacy education for seniors, military servicemembers, and youth. That work led to my entry at the California State Teachers’ Retirement System (CalSTRS) as the Director of Retirement Readiness. Most recently, I was Deputy Director of the Teacher Retirement System of Texas (TRS).

You have worked at some of the biggest public pension plans in the country. How do you think that will inform your leadership at PERA?

The experience I’ve gained at CalSTRS and TRS taught me that every pension system is both similar and yet unique. Pension systems share the need to serve members, engage with employers and stakeholders such as the Legislature, and attract and retain the talent necessary to administer a large financial institution with billions of dollars in assets. Each system also operates in a unique environment with its own plan design, statutory and regulatory frameworks, and the organizational culture cultivated by leadership. As I onboard with PERA, I will listen to the terrific talent already in place to determine what works and where opportunity lies to help advance the mission and serve our members.

PERA is often a topic of discussion at the State Legislature and beyond. What’s your approach to engaging with stakeholders?

I see the role of the CEO/Executive Director as one that is primarily external facing. While I will spend time working closely with the executive team and leadership on the high-level decisions my position is responsible for addressing, I will also prioritize serving as the face of Colorado PERA with its stakeholders. This includes member organizations, legislators, state and national pension associations, institutional investor organizations, and other key participants in the pension space. As the CEO/Executive Director, I will approach interactions with an open mind and a listening ear.

There’s been some renewed interest in defined benefit plans in both the public and private sectors. What’s your take on the future of pensions?

I’ve been a proponent of defined benefit plans for 20 years. They are—and in my opinion will remain—an effective solution for helping to ensure retirement security for all Americans. Given the vagaries of the stock market, and the challenge many people experience in making the right financial decisions necessary to fund a retirement, I believe defined benefit plans constitute a bedrock element in the nation’s retirement landscape.

As we develop our next strategic plan, what trends or issues do you think the PERA Board will want to address?

In my experience, the trustees of pension systems tend to focus their attention on issues that involve actuarial soundness, excellent customer service, operational effectiveness, and employer and stakeholder relations. Simply put, that equates to members, employers, financial issues, and operational concerns. I look forward to a collaborative process with the Board, executive staff, stakeholders, and the organization in building a roadmap to continued success for Colorado PERA.

Finally, if you could deliver one message to our active members and retirees, what would it be?

It is an honor and a privilege to serve as the CEO/Executive Director for Colorado PERA. I will work hard every day to ensure the retirement security of PERA’s hardworking members and the sustainability of the fund.

State Lawmakers Pass Six PERA-Related Bills in 2024 Legislative Session

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That’s a wrap—Colorado’s 2024 legislative session has come to an end.

Each session, legislators introduce hundreds of new bills, and it’s not unusual for some of them to pertain to PERA and its members. This year, lawmakers proposed nine PERA-related bills.

By the end of the session on May 8, six of those nine bills had passed and were either signed into law or will be sent to Gov. Jared Polis for action.

Below is a summary of the bills that passed. For information on the other proposed bills, click here.

Working after retirement

Lawmakers approved two bills that expand the number of PERA retirees who can return to work without a reduction in their benefits, both of which Gov. Polis signed into law.

Under current law, all PERA retirees may work up to 110 days or 720 hours per calendar year for one or more PERA employer(s) without a reduction in their retirement benefits. In addition to the 110 days for all retirees, employers in the School and Denver Public Schools (DPS) divisions, as well as each state college or university, can designate up to 10 retirees who are permitted to work up to 140 days or 916 hours per calendar year without reductions to their PERA benefits. House Bill 1044 will allow districts with more than 10,000 students to designate an additional retiree for each thousand students over 10,000.

Also, rural school districts can declare a critical shortage of qualified teachers, school bus drivers, food service workers, school nurses, or paraprofessionals and hire PERA retirees to fill those positions without having their retirement benefits reduced. Senate Bill 99 adds principals and superintendents to the list of qualified positions.

RELATED: Understanding the Financial Impact of Working After Retirement

Actuarial study

House Bill 1427 calls for the State Auditor, in cooperation with PERA, to enlist an independent actuarial firm experienced with public pensions to conduct a comprehensive study comparing the cost and effectiveness of the PERA Defined Benefit Plan to alternative plan designs, as well as providing an analysis of certain aspects of PERA current defined benefit and defined contribution plans.

As Colorado’s public workforce evolves, it’s important that Colorado PERA remain flexible enough to meet the membership’s changing needs. This study will help policymakers assess PERA’s continued value in recruiting and retaining a highly qualified public workforce in the years ahead.

READ MORE: Lawmakers Pass Bill to Refresh Study on Value of PERA’s Defined Benefit Plan

Other PERA provisions

Other bills that passed the Legislature made minor adjustments to PERA membership provisions by expanding the definition of “State Trooper” for the purpose of PERA benefits.

Senate Bill 169 expands the definition of State Trooper for the purpose of PERA benefits to include duly sworn employees of the Division of Fire Prevention and Control in the Department of Public Safety whose duties include structural or wildfire management, wildfire response, live-fire training, or wildfire leadership, as determined by the executive director of the department.

Senate Bill 186 expands the definition of State Trooper for the purpose of PERA benefits to include county coroners and deputy coroners.

Another bill, Senate Bill 13, seeks to establish salary parity among publicly funded lawyers in the criminal justice system. The introduced version of the bill also included a provision related to PERA, but this was removed from the final bill passed by the Legislature.